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1. If you can choose a single source of cash for your business, what will it be? describe why?

2. How can the business get large profits but have the small balance in Retained Earnings?

3. How can the business lose money for many years and still have plenty cash?

4. describe reasons why the business can be profitable for many years and still have the cash shortage?

5. Assume your business has $80,000 worth of liabilities which should be paid within next three months. Your liquid (can be turned into cash quickly) assets total only $60,000, your sales and collections from customers are slow.  Recognize the ways to finance remaining $20,000 you will require, so you can pay all of the liabilities when they are due.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99383

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